U.K. INSURANCE MERGER

Press, Volume XCVIII, Issue 28929, 24 June 1959, Page 19

U.K. INSURANCE MERGER

Offer For Scottish Union

A £ 100 million insurance merger has been announced in London. The Yorkshire Insurance Company, Ltd., has made a share and cash offer for the ordinary capital of the Scottish Union and National Insurance Company.

The take-over bid follows soon after the share and cash bid by the Commercial Union Assurance Company, Ltd., for the North British and Mercantile Insurance 'Company, Ltd. Commenting on the proposed merger, “The Times” states that, although it is somewhat smaller than the one of the Commercial Union and North British, the background is in some ways similar.

Both Yorkshire ahd Scottish Union, like North British, have faced problems in the United States.

Last year Yorkshire disposed of its United States interests, while the difficulties of the Scottish Union there, coupled with the fact that it is one of the smaller British insurance firms, have made its shares one of the favourite insurance take-over prospects on the stock exchange. For insurance companies as a whole, states “The Times,” the important implication of Yorkshire’s offer is that Scottish Union may dispose of its American interests. If this happens, the new group will be virtually the only large composite office which does not do business in the United States.